I have seen the suggestion many times to cut a hole with a hole saw, While this is not a big deal, this may make for a little neater job.
Intsead of using the hole that was removed to fill the hole afterwords, take the next size up hole saw (1/8 inch larger is close to perfect)and drill a hole through a scrap of wood. Now remove the guide drill bit from the hole saw and clamp the scrap wood to a piece of wood you want to actually plug the hole with. Drill through the second board using the hole in the scrap to stabilize the drill and cut a filler plug. Sand the edges enough to get a snug fit and fill your hole as normal, without a gap around the edges or a hole in the middle.
I've used this method to repair damage to hardwood floors and thought some of the more . . . particular folks here might like this method for repairing inspection holes.
Intsead of using the hole that was removed to fill the hole afterwords, take the next size up hole saw (1/8 inch larger is close to perfect)and drill a hole through a scrap of wood. Now remove the guide drill bit from the hole saw and clamp the scrap wood to a piece of wood you want to actually plug the hole with. Drill through the second board using the hole in the scrap to stabilize the drill and cut a filler plug. Sand the edges enough to get a snug fit and fill your hole as normal, without a gap around the edges or a hole in the middle.
I've used this method to repair damage to hardwood floors and thought some of the more . . . particular folks here might like this method for repairing inspection holes.